How to record government money that should be allocated to parents later

Question

Dear Experts,

We're running a small childcare centre. Recently government send us some money to our bank account. That money is not for our centre, but should be allocated to parents later.

Wondering how we should record this money in MYOB. Initially, I thought I could simply ignore that money because it's not our income, but soon I found if I do this, bank reconciliation will fail. So, please tell me how I should do it.

Thanks in advance!

PriyaSelvaraj · Accepted Answer

Hi @catherinehu

Welcome to Myob community forum and hope you find the resource valuable!

In general, you can use the 'Receive money' option to record the money received from government and can be posted to a separate liability /loan account/clearing account until they are paid out.

I would highly recommend seeking advice from your Tax accountant as to record these transactions could be complex and could be specific to your organization.

The following help article has detailed instructions to record a receive money Receive money - MYOB Business - MYOB Help Centre.

Regards

Priya Selvaraj